BCX holds back pay hikes

By Christelle du Toit, ITWeb senior journalist

Johannesburg, 28 May 2008

Business Connexion (BCX) management will not receive salary increases until September this year.

This is one of the determinations to have come from the company's revitalisation programme, an update of which was released to shareholders recently.

The programme follows on heated criticism leveled against the company of late for not performing up to market expectations.

It set out targets, such as improving its operating margins from the current 2% to 8% by 2011.

According to BCX CEO Benjamin Mophatlane, the decision to hold back incentives was taken as the company wants to finalise its structure first. Pay hikes are also to be aligned with performance levels.

"By taking control and facing the numbers, we are laying the foundations of an organisation that is leaner, more streamlined and transparent," says Mophatlane. "We can then face the future inherently [more] efficient and driven to perform. Incentive schemes will be implemented that will be closely coupled to performance excellence."

The new reward system is to be implemented as of June.

In addition, the company will be reducing its discretionary spend, as well as its leave provisioning.

The revitalisation programme follows on a full review of the business which identified issues like poor performance, inefficiencies and duplication, poor accountability, and measurement, a lack of one set of numbers for managers to work from, as well as the absence of a unifying vision.

The programme seeks to improve promote performance excellence, attract and retain quality individuals, and install a culture of absolute accountability.

It is envisaged that the process will be finalised by August this year, but - in the meantime - the company will not be accepting new client contracts below its profitability thresholds. It was revealed that less than 5% of the organisation's customers contribute more than 60% of its revenue.

In the medium-term, the company will be embarking on a roadshow to employees and clients to get buy-in to the revitalisation drive and build a unified culture.